What’s the rule of 72 ?

How many years it will take for you to double your investment at the given rate of returns ?

• Doubling your money in 2 years

If you are an aggressive investor, you need to invest in avenues that provide annualized returns ranging anywhere around 36%.

• Doubling your money in 5 years

If you are aiming towards a mid-term goal to be realized, look out for avenues that provide annualized returns of at least 14.5% (adjusting the inflation).

• Doubling your money in 10 years

Planning for a long-term goal, you need a rate of return of around 7.5% to double your money.

72 divided by the annual return gives you the approximate number of years it will take to double.

As another example, a return of 9% would take roughly 8 years to double (72 divided by 9 = 8 years).

The Rule of 72.

So what are the different avenues we can invest in? FD , Stocks ,ETF, Mutual Fund , Bonds etc.

There are risky ways and there are safe ways. Doubling money requires a lot of calculation and speculation.

Once you have set your goals, you can select avenues carefully based on your risk tolerance.

This is just one of the rules that experts have designed. There will be some that you will learn from your own experiences as an investor. It’s your call to take that step to start your investing journey and start growing.


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